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401k Strategies for Retiring in Style

If you want to retire in style, you are probably not banking on relying on Social Security. Kwei Battles, a 401k Investor featured in the video invests in a 401k, Roth IRA and some personal investments. This video gives basics tips on how to plan out your 401k retirement plan & strategies you can use to avoid common pitfalls and have a successful retirement. The most common tips are, beware of company stock and do not put all your eggs in one basket, keep your investments simple and to a maximum of 5, and review your investment portfolio every now and then (this could be every quarter, annually or even every month – if you have the time).

Video Review

Commentator: And you’ve got to do more than just put money aside. You’ve got to figure out, where to put it!

Kwei Battles: American Bank, Washington Mutual are some of my banks. I have my money divided into 5 categories.

Commentator: If you feel a little uncomfortable about your company’s retirement plan, here are a few basics.

i) Beware of Company Stock: If your company offers its own stock as an investment option, just say no. That’s too many eggs in one basket.

ii) Keep your plan simple: You don’t need more than a few investments. Along with bond and money market funds, almost every expert suggests putting some money in stocks. But how do you decide how much? Here’s on rule of thumb:

100 – Your Current Age = Stock % (Put this percentage of your money in to stocks).

Divide what’s left over between money market funds & bonds.

iii) Review your account every now and then and make adjustments as necessary. This could be every quarter or every year.

Stacey Johnson (CPA): There is one more thing when it comes to retirement plans, fees! Watch out for the next video set for more information on 401k fees!